1Q'24 Financial Review: Revenue Decline Overshadows Cost Management Efforts
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1Q’24 EBITDA = PLN -2.0mn vs. -2.5mn our expectations Lukas Cinikas lukas.cinikas@pekao.com.p l The company published its financial results for 1Q'24:
■ Revenue = PLN 8.8mn (-16% y/y) vs. 12.9mn of our expectations.
■ Operating expenses = PLN -12.6mn (down 3% y/y).
■ EBIT = PLN -4.0mn (-2.3mn in Q1'23) vs. -5.3mn of our expectations.
■ EBITDA = PLN -2.0mn (-0.5mn a year earlier) vs. -2.5mn of our expectations.
■ Net profit = PLN -3.3mn (-2.1mn a year earlier) vs. -5.5mn of our forecasts.
■ OCF = PLN -4.3mn vs. +10.7mn a year earlier. CAPEX = PLN 5.6mn vs. 3.0mn a year earlier.
The company reported a 16% y/y drop in revenue, largely due to a decline in recognized grants (PLN 2.9mn vs. PLN 4.3mn a year earlier and PLN 3.4mn of our assumptions). Revenues from product sales in the electronics manufacturing segment fell another quarter y/y by about 30% to PLN 1.9mn. Revenues from product sales in the quantum systems segment also fell by 19% y/y (to PLN 1.1mn, we assumed 1.5mn). Revenues from product sales in the space segment increased to PLN 2.8mn (vs. 2.0mn a year earlier). Salary costs increased y/y to PLN 6.8mn (we assumed 7.0mn) vs. 5.6mn a year earlier. We assumed PLN 5.2mn of CAPEX expenses vs. 5.6mn reported by the company. Combined with negative OCF, net cash levels fell to PLN 38.5mn at the end of the quarter vs. PLN 49.2mn at the end of last year.
